Rich People Don't Spend Their Money Foolishly

During our FPU class Dave Ramsey (DR) tells us rich people bargain on everything and that they don't spend their money foolishly.

So we went out to dinner with one of the fiancé's clients, who is what we refer to as rich. They invited us.

While we were at dinner, he kept hinting that we should order from the PB menu. This menu was the special. He'd mention that we could order what ever we liked, but recommend the PB menu. So after, several comments about ordering from the PB menu, we ordered from the PB menu. I couldn't help but laugh to myself, I thought about Dave Ramsey saying the PB menu gives you a 3 course meal and the others don't, what's your better choice? The PB menu. Why spend à la carte, when you get the same meal or better for less. I ended up with steak vs chicken.

When it came time to pay, again, our rich friend was smart about spending his money, he whipped out his coupon. Again I laughed to myself, thinking about DR comments, "rich people are rich because they don't spend their money foolishly."

As we headed out, our rich friend ask where did we park? The fiancé told him valet. He said, "okay we are over here in the garage."
Again DR words played in my head. The fiancé paid for valet ( $30). Normally I think it's about $10 but because he wanted to park the car in the front, he paid the extra $20. I simply reminded him that rich people are rich because they don't spend their money foolishly. Cost our rich friend $5 to park in the garage. While it cost us $30 and we are poor.

10 Responses to “Rich People Don't Spend Their Money Foolishly”

Excellent Post Amber! Very true....also, the wealthy do not spend money on "doodads" or toys. They live life to the fullest, they find ways to embrace without spending. And remember, there is a huge difference between self made wealth and inheritance.

I absolutely agree. Mainly because what you or I might perceive of as "rich" really does not feel that way to an affluent person. We all have pressing money concerns even though to an outsider someone else may seem quite comfortable. You never really can know someone's full financial situation.

One thing I have said before in the blogs is that we were a little culture shocked when we moved to a city that was 70% cheaper. We were only in our young 20s and I was used to everyone being pretty frugal because like ALL our money went to rent. So we moved to a high-end neighborhood and actually had money left over after paying for housing. I was taken aback by low-income people going on and on about their diamond earrings, BMWs, and vacation homes. & it was clear that our frugality (which had been basic survival before) was VERY looked down upon. We initially felt very out of place being very young and relatively low income in our fancy schmanzy neighborhood, but we could actually talk about thrift store shopping, coupons, and cutting cable with our neighbors. That was a bit of a lightbulb moment for me. & their income was high enough they have BMWs, diamonds, and vacation homes. They can afford all that. But when the economy was good and they had high incomes, they were still being careful and finding ways to save money. That will always stick with me. & to be clear, this is not everyone. But the financially conscious and frugal people were just infinitely easier to find on the wealthy side of town.

Thanks for the very succinct summary of an important concept for ordinary people. I wonder if the client sees himself as 'wealthy' or if you thought less of the other couple for thrifty habits like skipping the a la carte menu or valet parking.

Thanks everyone for your continued support through this thing I call my financial journey.

SNAFU, I'm not sure if the couple considered themselves as wealthy but I for sure did not see them being thrifty with their money. What I saw was a couple who was being smart with their money, by having a great meal on a special and using coupons to do so as well. Not to mention they didn't waste $30 to park a vehicle. I personally looked at it as a learning experience because it's clear they got it right. My inside laughter was that I've heard be smart with your money before, and to have it validated just a few days later made me realize how important it is to be smart with my money 😃

I cracked up because I'd do exactly what those friends of your would do. Order off the PB menu and use a coupon and garage it. I don't know if I've ever valet parked. We also tend to not uber anywhere because it limits the drinks out if one of us is driving.

You said it...rich people are rich because they don't spend their money foolishly.

If you haven't already read this book, I would recommend it because it validates everything you have just written about -- rich folks bargain, they scrimp, and they economize: "The Millionaire Next Door." I think the media makes us think that the wealthy just spend lavishly, but most don't. Look at Warren Buffet...he isn't flashy when it comes to shopping or even his home or car.

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